Industries Qatar Best Performer in Q4 on Earnings: Doha Mover

Dec. 20 (Bloomberg) -- Industries Qatar is set to become
the best performer on the Persian Gulf nation’s gauge this
quarter as investors bet 2012 profit will exceed expectations
and after the company allowed foreigners to buy more stock.

Shares of the Middle East’s second-biggest petrochemicals
maker rose in five of the past six trading days, gaining 2.2
percent in the period. The shares slipped 0.2 percent to 155.4
riyals at the close in Doha today after rising as much as 0.9
percent. The stock, which was the most traded on Qatar’s gauge
by value today, has advanced 10 percent in the fourth quarter,
making it the best performer among 20 members on the index.

The Doha-based company’s foreign ownership limit was raised
to 12.25 percent from 7.5 percent in September. Qatari companies
limit foreign ownership at 25 percent, although they’re allowed
to increase the limit to 49 percent if shareholders approve. The
company, which also makes fertilizers and steel, posted a 27
percent jump in third-quarter profit, topping estimates.
Industries Qatar has the biggest weighting on Doha’s gauge.

“It’s a solid company and remains attractively valued” as
full-year earnings may beat expectations,’’ said Tariq Qaqish,
who helps manage $100 million as deputy head of asset management
at Al Mal Capital in Dubai. “After the company increased the
foreign ownership limit, it looks more attractive to
international fund managers.”

Overseas Investors

Overseas investors have been interested in Gulf Cooperation
Council assets as the oil and gas exporters invest petroleum
wealth into expansion plans. Qatar, which is preparing to host
the 2022 World Cup by investing $130 billion to build
infrastructure including stadiums, will post economic growth of
6.1 percent this year, the highest in the six-nation GCC,
according the median estimate of 11 analysts compiled by
Bloomberg.

Industries Qatar may post an 11 percent gain in full-year
profit to 8.8 billion riyals ($2.4 billion), according to the
mean estimate of 13 analysts on Bloomberg. Profit will probably
continue to rise annually through 2015, analyst estimates on
Bloomberg show. Industries Qatar’s shares have advanced 17
percent so far this year, compared with a decline of 3.8 percent
for the benchmark QE Index.

Fourteen analysts recommend investors buy Industries
Qatar’s shares, while one advises they hold them. The company
has a price-to-earnings ratio of 10.3 times, compared with 9.6
times for the QE Index.